Attorney General Jennifer Davenport, along with 21 other attorneys general and charitable regulators, has called on GoFundMe to address concerns about its fundraising practices. The coalition sent a letter demanding that the platform provide evidence it has removed unauthorized donation web pages and stopped collecting hidden fees from donors.
The letter follows reports that GoFundMe created donation pages for more than 1.4 million charities without authorization and collected additional fees by prompting donors to pay a default “tip” of 16.5% directly to the company.
“Nonprofits and charities work hard to earn credibility with donors and the public. That credibility is needlessly undermined when a donation platform engages in misconduct and deceives the public,” said Attorney General Davenport. “A trusted platform that claims to support donors should be transparent and up front about its product. Using default settings that push donors to pay hefty fees in the form of ‘tips’ undermines the spirit of giving that GoFundMe claims to support.”
According to the letter, some of GoFundMe’s unauthorized pages included inaccurate information about charities or where donations were being directed. There are also concerns that GoFundMe used search engine optimization techniques so its pages appeared above official charity fundraising campaigns, potentially diverting donors or people seeking charitable services.
The coalition highlighted that requiring users to opt out of a preselected tip—rather than opt in—can result in significant undisclosed payments going directly to GoFundMe instead of benefiting charities.
GoFundMe has been asked to take several steps within 14 days: provide proof all unauthorized web pages have been removed; disclose any information affecting donor decisions, such as where donations went if not to the intended charity; explain how it prevented its donation pages from appearing above official charity sites in search results; and review whether tips or similar charges should be redirected toward charities.
Joining Attorney General Davenport are officials from California, Delaware, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Vermont, Washington, and Wisconsin.
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The office plays an important role in public safety by prosecuting offenses and providing oversight throughout New Jersey communities. It functions as a central agency focused on justice through legal representation and enforcement efforts aimed at protecting residents’ lives and property.
